Gold Making Charges Explained: Per Gram or Percentage

Making charges are the line on the bill that people most often question. It helps to know what they pay for and how they are worked out, because then you can compare two quotes properly.

What are making charges?

Making charges, sometimes called labour charges, cover the work of turning gold into jewellery: design, casting or hand fabrication, finishing, polishing, setting and quality checks. They are separate from the value of the gold itself and from the value of any stones.

The two ways they are quoted

Per gram. The jeweller charges a fixed amount for every gram of gold in the piece. For example, if the making charge is a set figure per gram and the piece weighs 5 grams, you multiply the two.

As a percentage. The charge is a percentage of the gold value. For example, suppose the gold in a piece is worth a certain amount and the making charge is 10 percent, then the making charge is one tenth of that gold value. When the gold rate rises, a percentage charge rises with it, while a per-gram charge stays fixed.

Neither method is better in itself. What matters is the final number for the specific piece.

Why making charges differ so much

• Design complexity: a plain band takes less work than a piece with intricate detail.
• Handmade or machine-made: hand finishing takes more time than machine production.
• Weight: on lighter pieces, the labour is a larger share of the total, so the percentage can look high on small items.
• Stone setting: setting small diamonds by hand is skilled work and is usually priced into the making.
• Brand and finish: surface finishes, plating over white gold and detailed polishing add steps.

How to compare two quotes fairly

Do not compare the percentage on one bill with the per-gram figure on another. Instead, compare the same things on both:

1. The gold weight and the purity (karat).
2. The rate used for gold on that day.
3. The total making charge in rupees.
4. The stone value and certification.
5. The tax on each part.

Then compare the final price for the same or a similar design. How a jewellery price is calculated, step by step shows the full order of calculation.

Are making charges negotiable?

Often there is some room, especially on larger purchases, but a very low making charge can be balanced by a higher gold rate used, a lower purity, or a smaller stone. Ask for the full breakup so that nothing is hidden.

What about wastage?

Some jewellers add a wastage charge on top, covering the metal lost during crafting. Others fold it into the making charge. Either is fine if it is stated clearly. Our explainer on what wastage is in gold jewellery goes into detail.

Do making charges come back when you exchange or sell?

In most exchanges, the buyer pays for the gold content, not for the labour that went into the piece. That is why people are sometimes surprised that making charges are not returned. It is worth asking how a jeweller treats making charges on exchange before you buy.

See the breakup before you decide

On every product page we show the gold value, making charge, stone value and tax as separate lines, so you can judge the price yourself. Browse our rings and compare a few, or book an appointment and ask our team to walk you through a bill.